P723- PROGRAM ON ENTERPRISE RISK MANAGEMENT (LIFE)

 Background:

 Every business organization face a number of risks ranging from routine ones to existential. Insurance business is a unique in the sense that as the underwriter of risks, its risk profile is considerably different from other business organizations.

Within insurance industry, there is substantial difference in the risks faced by Life Insurers and General Insurers. This is due to the nature of their business where life insurers tend to take relatively a long-term view.

The global financial crisis of 20072008, changed the way Insurance Industry is regulated.

Today, key issues threatening existing insurance model is global warming and the increase in catastrophic risks due to it. The ever-increasing reliance on technology has its own elements of risks.

Pandemic had and may continue to have a major impact on the way Insurance Industry perceives and responds to risks.

Thus, today every Insurer is expected to have a robust ERM Framework that takes care of the regulatory compliance as well as be adequate for the rapidly emerging risks. The Technology Risk Management (TRM) framework is expected to take care of technology related risks

The Indian Insurance Market is also transiting towards more complex and challenging market conditions due to the factors above. The Indian regulator has already mandated or in the process of mandating global best practices in order to ensure a robust Insurance Industry.

A major change would be moving to Risk Based Capital (RBC) from current static solvency norms.

As a part of ERM framework, business plan, Risk registers, Own Risk and Solvency Assessment (ORSA), Stress test will be a part of business processes for all Life Insurers.

IFRS 17envisaged to be implemented in India the near future will have its own impact on all Insurers.

Thus it is very imperative for the Life Insurance Industry to start preparing for a robust ERM/TRM framework for the continued success of the business as well as for being  fully compliant with the regulations. At the end of this course the participants are expected to have an overview of the ERM framework and its significance.

Objectives:

At the end of the programme participants will be able to understand and appreciate:

    Concept of ERM and the global standards

    Risk Based Capital Solvency Its implications on ERM and Insurance Business

    Define Risk Appetite for the company and Integrate Business Strategy into ERM

    Identification of Key Risks and quantifying them in Life Insurance Business

    Assessment of Operational Risks including Cyber Risk and Reputation Risks

    Risk Mitigation Strategies and Risk Transfer methods

    Operational Issues in Implementation of ERM 

Contents:

  Introduction to ERM and the current standards for its implementation

  Evolving a Business Strategy from the Mission ,Vision, Strategic objectives

  Business Strategy and ERM Aligning Business strategy with ERM strategy

  Assessment of Insurance Business Risk

  Identification of risks and risk register

  Risk Management Policy

  Risk tolerance statement

  Assessment of Market Risk (Investment Risks) including Credit Risk & ALM

  Capital Management

  ORSA

  Continuity Analysis and Stress Testing

  TRM Framework

  Management of Operational Risks including Cyber Risks and Reputation Risks

  Risk Governance

  Risk Control Measures and Risk Mitigation Tools

  Risk Responsiveness and Feedback Loop

  Operational Issues in ERM Implementation including Embedding risk culture

  Risk Based Solvency and its implications on Insurance Business

Participants Profile:

ERM Nodal Officers from Central Office and Officers from CO Investment Department, to be nominated by CO-HRD  

One ERM Nodal Officer from each zone i.e  RM (IT)  or  Secretary (IT) if RM (IT) had already attended the above session, , to be nominated by  ZO-HRD  

Duration:       3 days

Dates:              07.03.2022-09.03.2022